Biz talk

China forex reserves

JP Morgan said in a recent report that it believes China will continue to be a net buyer of US Treasuries and dollar assets in the short term. However, the net amount of China's purchases of these assets is expected to moderate.

The report also said the Chinese authorities may increase their sales of foreign exchange reserves to the State-owned enterprises (or lend to them) and encourage these companies to increase strategic acquisitions in the offshore market.